diff --git a/.beads/issues.jsonl b/.beads/issues.jsonl
index ab5542e3..7de340ce 100644
--- a/.beads/issues.jsonl
+++ b/.beads/issues.jsonl
@@ -5,7 +5,7 @@
 {"id":"bd-102","title":"Test daemon auto-detection","description":"","status":"closed","priority":3,"issue_type":"task","created_at":"2025-10-16T23:04:51.334824-07:00","updated_at":"2025-10-17T01:32:00.965331-07:00","closed_at":"2025-10-16T23:04:55.769268-07:00"}
 {"id":"bd-103","title":"Test daemon RPC","description":"","status":"closed","priority":2,"issue_type":"task","created_at":"2025-10-16T23:18:41.845364-07:00","updated_at":"2025-10-17T01:32:00.981005-07:00","closed_at":"2025-10-16T23:19:11.402442-07:00"}
 {"id":"bd-104","title":"Add comprehensive daemon tests for RPC integration","description":"Add tests for:\n- RPC server integration (daemon accepts connections)\n- Concurrent client operations\n- Socket cleanup on shutdown\n- Server start failures (socket already exists)\n- Graceful shutdown verification\n\nThese tests were identified in bd-100 code review but not implemented yet.","status":"closed","priority":1,"issue_type":"task","created_at":"2025-10-16T23:28:30.552132-07:00","updated_at":"2025-10-17T01:32:01.028003-07:00","closed_at":"2025-10-16T23:57:54.583646-07:00"}
-{"id":"bd-105","title":"Investigate CWD propagation from Claude Code/Amp to MCP server","description":"","design":"## Problem\n\nMCP servers don't know which directory the user is working in within Claude Code or Amp. This causes database routing issues for beads because:\n\n1. MCP server process starts with its own CWD (wherever it was launched from)\n2. `bd` binary uses tree-walking to discover databases based on CWD\n3. Without correct CWD, `bd` discovers the wrong database or falls back to ~/.beads\n\n## Current Workaround\n\nWe're using explicit `BEADS_DB` environment variables in MCP server configuration:\n- One MCP server per repo with explicit database path\n- Works but doesn't scale (30+ repos with .beads/ directories)\n\n## Desired Solution\n\nMCP server should receive CWD context either:\n\n### Option A: Startup Time\n- Claude Code/Amp passes working directory when launching MCP server\n- MCP server uses that directory for all tool calls\n- **Question:** Is this supported in MCP protocol/implementations?\n\n### Option B: Tool Call Time  \n- Each MCP tool call includes a `cwd` parameter\n- Tools use that CWD for subprocess execution\n- **Question:** Does MCP protocol support per-call context?\n\n### Option C: Hybrid\n- MCP server detects directory from Claude Code workspace/project\n- Tools accept optional `cwd` override parameter\n\n## Investigation Steps\n\n1. Review MCP protocol specification for context passing\n2. Check Claude Code MCP implementation for CWD handling\n3. Check Amp MCP implementation for CWD handling  \n4. Test if PWD environment variable is set correctly by Claude Code\n5. Prototype dynamic CWD detection in beads-mcp\n6. Document findings and recommend approach\n\n## References\n\n- beads-mcp already has `BEADS_WORKING_DIR` config support\n- bd_client.py uses `cwd` parameter for subprocess calls\n- Current implementation: `os.environ.get('PWD', os.getcwd())`\n","acceptance_criteria":"- Documented investigation findings\n- Tested CWD propagation in both Claude Code and Amp\n- Recommended approach for solving multi-repo MCP database routing\n- Prototype or proof-of-concept if feasible","notes":"## Implementation Complete (2025-10-17)\n\nImplemented PATH 1 (Simple Context Management) from the recommended solutions.\n\n### What Was Built\n\nAdded two new MCP tools to beads-mcp:\n\n1. **set_context(workspace_root)** - Sets workspace root and discovers database\n   - Resolves to git repo root automatically\n   - Walks up tree to find `.beads/*.db`\n   - Sets env vars: BEADS_WORKING_DIR, BEADS_DB, BEADS_CONTEXT_SET\n\n2. **where_am_i()** - Shows current context for debugging\n   - Returns workspace root, database path, actor\n\n3. **@require_context decorator** - Guards all write operations\n   - Only enforced when BEADS_REQUIRE_CONTEXT=1 env var is set\n   - Ensures context is set before create/update/close/reopen/dep/init\n   - Backward compatible (off by default)\n\n### Implementation Details\n\n- File: `integrations/beads-mcp/src/beads_mcp/server.py`\n- Tests: All existing tests pass (103/104)\n- Documentation: `integrations/beads-mcp/CONTEXT_MANAGEMENT.md`\n\n### Key Discovery: Environment Variable Limitation\n\n**FastMCP architectural constraint:** Environment variables don't persist between tool calls in the current MCP protocol/FastMCP implementation.\n\nThis means:\n- `set_context` works within its own tool call\n- Subsequent tools may not see the env vars\n- True session state would require MCP protocol changes\n\n### Current Status\n\n**Partial solution delivered:**\n✅ Tools exist and work correctly\n✅ Can be used for explicit context management\n✅ Provides visibility (where_am_i)\n✅ Guards against accidental misrouting (when enabled)\n⚠️ Limited by MCP protocol's stateless nature\n\n**For production use:** Continue with current workaround (explicit BEADS_DB per MCP server config) until:\n1. MCP protocol adds session state support, OR\n2. We implement daemon RPC with per-request cwd (PATH 1.5), OR\n3. Client implementations can pass context with every tool call\n\n### Next Steps\n\n**Immediate (keep current workaround):**\n- Use single MCP server with explicit BEADS_DB in config\n- Set BEADS_REQUIRE_CONTEXT=1 for safety\n- Call set_context at session start (even if env vars don't persist, it validates paths)\n\n**Medium-term (if needed):**\n- Implement PATH 1.5: Add cwd parameter to daemon RPC protocol\n- Update MCP server to use daemon client instead of direct CLI calls\n- Per-request context routing via daemon\n\n**Long-term (if \u003e50 repos):**\n- Implement PATH 2: Advanced routing daemon with repo→DB index\n\n## Original Notes\n[Previous investigation notes preserved above...]","status":"open","priority":1,"issue_type":"feature","created_at":"2025-10-17T02:06:09.737832-07:00","updated_at":"2025-10-17T16:06:28.841726-07:00"}
+{"id":"bd-105","title":"Investigate CWD propagation from Claude Code/Amp to MCP server","description":"","design":"## Problem\n\nMCP servers don't know which directory the user is working in within Claude Code or Amp. This causes database routing issues for beads because:\n\n1. MCP server process starts with its own CWD (wherever it was launched from)\n2. `bd` binary uses tree-walking to discover databases based on CWD\n3. Without correct CWD, `bd` discovers the wrong database or falls back to ~/.beads\n\n## Current Workaround\n\nWe're using explicit `BEADS_DB` environment variables in MCP server configuration:\n- One MCP server per repo with explicit database path\n- Works but doesn't scale (30+ repos with .beads/ directories)\n\n## Desired Solution\n\nMCP server should receive CWD context either:\n\n### Option A: Startup Time\n- Claude Code/Amp passes working directory when launching MCP server\n- MCP server uses that directory for all tool calls\n- **Question:** Is this supported in MCP protocol/implementations?\n\n### Option B: Tool Call Time  \n- Each MCP tool call includes a `cwd` parameter\n- Tools use that CWD for subprocess execution\n- **Question:** Does MCP protocol support per-call context?\n\n### Option C: Hybrid\n- MCP server detects directory from Claude Code workspace/project\n- Tools accept optional `cwd` override parameter\n\n## Investigation Steps\n\n1. Review MCP protocol specification for context passing\n2. Check Claude Code MCP implementation for CWD handling\n3. Check Amp MCP implementation for CWD handling  \n4. Test if PWD environment variable is set correctly by Claude Code\n5. Prototype dynamic CWD detection in beads-mcp\n6. Document findings and recommend approach\n\n## References\n\n- beads-mcp already has `BEADS_WORKING_DIR` config support\n- bd_client.py uses `cwd` parameter for subprocess calls\n- Current implementation: `os.environ.get('PWD', os.getcwd())`\n","acceptance_criteria":"- Documented investigation findings\n- Tested CWD propagation in both Claude Code and Amp\n- Recommended approach for solving multi-repo MCP database routing\n- Prototype or proof-of-concept if feasible","notes":"## Implementation Complete (2025-10-17)\n\nImplemented PATH 1 (Simple Context Management) from the recommended solutions.\n\n### What Was Built\n\nAdded two new MCP tools to beads-mcp:\n\n1. **set_context(workspace_root)** - Sets workspace root and discovers database\n   - Resolves to git repo root automatically\n   - Walks up tree to find `.beads/*.db`\n   - Sets env vars: BEADS_WORKING_DIR, BEADS_DB, BEADS_CONTEXT_SET\n\n2. **where_am_i()** - Shows current context for debugging\n   - Returns workspace root, database path, actor\n\n3. **@require_context decorator** - Guards all write operations\n   - Only enforced when BEADS_REQUIRE_CONTEXT=1 env var is set\n   - Ensures context is set before create/update/close/reopen/dep/init\n   - Backward compatible (off by default)\n\n### Implementation Details\n\n- File: `integrations/beads-mcp/src/beads_mcp/server.py`\n- Tests: All existing tests pass (103/104)\n- Documentation: `integrations/beads-mcp/CONTEXT_MANAGEMENT.md`\n\n### Key Discovery: Environment Variable Limitation\n\n**FastMCP architectural constraint:** Environment variables don't persist between tool calls in the current MCP protocol/FastMCP implementation.\n\nThis means:\n- `set_context` works within its own tool call\n- Subsequent tools may not see the env vars\n- True session state would require MCP protocol changes\n\n### Current Status\n\n**Partial solution delivered:**\n✅ Tools exist and work correctly\n✅ Can be used for explicit context management\n✅ Provides visibility (where_am_i)\n✅ Guards against accidental misrouting (when enabled)\n⚠️ Limited by MCP protocol's stateless nature\n\n**For production use:** Continue with current workaround (explicit BEADS_DB per MCP server config) until:\n1. MCP protocol adds session state support, OR\n2. We implement daemon RPC with per-request cwd (PATH 1.5), OR\n3. Client implementations can pass context with every tool call\n\n### Next Steps\n\n**Immediate (keep current workaround):**\n- Use single MCP server with explicit BEADS_DB in config\n- Set BEADS_REQUIRE_CONTEXT=1 for safety\n- Call set_context at session start (even if env vars don't persist, it validates paths)\n\n**Medium-term (if needed):**\n- Implement PATH 1.5: Add cwd parameter to daemon RPC protocol\n- Update MCP server to use daemon client instead of direct CLI calls\n- Per-request context routing via daemon\n\n**Long-term (if \u003e50 repos):**\n- Implement PATH 2: Advanced routing daemon with repo→DB index\n\n## Original Notes\n[Previous investigation notes preserved above...]","status":"closed","priority":1,"issue_type":"feature","created_at":"2025-10-17T02:06:09.737832-07:00","updated_at":"2025-10-17T16:54:35.196728-07:00","closed_at":"2025-10-17T16:54:35.196728-07:00"}
 {"id":"bd-106","title":"Test Epic for epic commands","description":"","status":"closed","priority":1,"issue_type":"epic","created_at":"2025-10-17T12:07:19.224482-07:00","updated_at":"2025-10-17T12:07:59.213044-07:00","closed_at":"2025-10-17T12:07:59.213044-07:00"}
 {"id":"bd-107","title":"Child task 1","description":"","status":"closed","priority":2,"issue_type":"task","created_at":"2025-10-17T12:07:24.27717-07:00","updated_at":"2025-10-17T12:07:38.659749-07:00","closed_at":"2025-10-17T12:07:38.659749-07:00","dependencies":[{"issue_id":"bd-107","depends_on_id":"bd-106","type":"parent-child","created_at":"2025-10-17T12:07:29.09999-07:00","created_by":"stevey"}]}
 {"id":"bd-108","title":"Child task 2","description":"","status":"closed","priority":2,"issue_type":"task","created_at":"2025-10-17T12:07:24.316272-07:00","updated_at":"2025-10-17T12:07:45.496304-07:00","closed_at":"2025-10-17T12:07:45.496304-07:00","dependencies":[{"issue_id":"bd-108","depends_on_id":"bd-106","type":"parent-child","created_at":"2025-10-17T12:07:29.133888-07:00","created_by":"stevey"}]}
@@ -15,7 +15,7 @@
 {"id":"bd-111","title":"Test epic 2","description":"","status":"closed","priority":1,"issue_type":"epic","created_at":"2025-10-17T12:09:59.880202-07:00","updated_at":"2025-10-17T12:10:06.063293-07:00","closed_at":"2025-10-17T12:10:06.063293-07:00"}
 {"id":"bd-112","title":"Child A","description":"","status":"closed","priority":2,"issue_type":"task","created_at":"2025-10-17T12:09:59.923718-07:00","updated_at":"2025-10-17T12:10:00.087913-07:00","closed_at":"2025-10-17T12:10:00.087913-07:00","dependencies":[{"issue_id":"bd-112","depends_on_id":"bd-111","type":"parent-child","created_at":"2025-10-17T12:09:59.965897-07:00","created_by":"stevey"}]}
 {"id":"bd-113","title":"Auto-close or warn about epics when all children complete","description":"","design":"See epic.go for implementation. Commands: bd epic status, bd epic close-eligible. Stats integration added.","acceptance_criteria":"Commands work, tests pass, addresses GitHub issue #62","status":"closed","priority":1,"issue_type":"feature","created_at":"2025-10-17T13:47:42.9642-07:00","updated_at":"2025-10-17T13:47:48.136662-07:00","closed_at":"2025-10-17T13:47:48.136662-07:00","external_ref":"gh-62"}
-{"id":"bd-114","title":"Agents confused by multiple MCP beads servers - use wrong database","description":"When multiple beads MCP servers are configured (e.g., beads-wyvern, beads-adar), agents may use the wrong server and create issues in wrong database. In this session, created wy-22 (wyvern) when working in beads repo. Root cause: All MCP servers available simultaneously with different BEADS_WORKING_DIR/BEADS_DB env vars. Agent must manually choose correct server or use direct bd commands.","design":"## This is a SYMPTOM of bd-105\n\nThe multi-server approach was a workaround attempt that backfired. See bd-105 for comprehensive root cause analysis.\n\n## Original Solutions (superseded by bd-105 analysis)\n\nPossible solutions: 1) Context-aware MCP routing based on pwd, 2) Single MCP server that auto-detects context, 3) Better agent instructions about which server to use, 4) Naming convention that makes server purpose obvious (beads-wyvern vs beads-current)\n\n## Actual Solution (from bd-105)\n\nImplement PATH 1: Single MCP server with SetContext/WhereAmI tools. This issue will be resolved when bd-105 is implemented.","notes":"This issue is a SYMPTOM of bd-105 (missing CWD propagation). The multi-server workaround (beads-wyvern, beads-adar, etc.) doesn't solve the root cause and creates new problems (agent confusion about which server to use). See bd-105 for comprehensive analysis and architectural solutions. Should be resolved when bd-105 is fixed with Path 1 (SetContext/WhereAmI approach).","status":"open","priority":0,"issue_type":"bug","created_at":"2025-10-17T13:47:58.092565-07:00","updated_at":"2025-10-17T15:54:13.19878-07:00"}
+{"id":"bd-114","title":"Agents confused by multiple MCP beads servers - use wrong database","description":"When multiple beads MCP servers are configured (e.g., beads-wyvern, beads-adar), agents may use the wrong server and create issues in wrong database. In this session, created wy-22 (wyvern) when working in beads repo. Root cause: All MCP servers available simultaneously with different BEADS_WORKING_DIR/BEADS_DB env vars. Agent must manually choose correct server or use direct bd commands.","design":"## This is a SYMPTOM of bd-105\n\nThe multi-server approach was a workaround attempt that backfired. See bd-105 for comprehensive root cause analysis.\n\n## Original Solutions (superseded by bd-105 analysis)\n\nPossible solutions: 1) Context-aware MCP routing based on pwd, 2) Single MCP server that auto-detects context, 3) Better agent instructions about which server to use, 4) Naming convention that makes server purpose obvious (beads-wyvern vs beads-current)\n\n## Actual Solution (from bd-105)\n\nImplement PATH 1: Single MCP server with SetContext/WhereAmI tools. This issue will be resolved when bd-105 is implemented.","notes":"This issue is a SYMPTOM of bd-105 (missing CWD propagation). The multi-server workaround (beads-wyvern, beads-adar, etc.) doesn't solve the root cause and creates new problems (agent confusion about which server to use). See bd-105 for comprehensive analysis and architectural solutions. Should be resolved when bd-105 is fixed with Path 1 (SetContext/WhereAmI approach).","status":"closed","priority":0,"issue_type":"bug","created_at":"2025-10-17T13:47:58.092565-07:00","updated_at":"2025-10-17T16:54:35.197351-07:00","closed_at":"2025-10-17T16:54:35.197351-07:00"}
 {"id":"bd-115","title":"Implement daemon RPC with per-request context routing (PATH 1.5)","description":"Enable MCP server to use daemon with per-request context instead of shelling out to bd CLI. This solves multi-repo routing properly.","design":"## Goal\n\nMCP server → daemon RPC with `cwd` parameter → daemon routes to correct database per request\n\n## Architecture\n\n```\nAI Client (Claude/Amp)\n  ↓\nMCP Server (set_context sets workspace_root)\n  ↓\nDaemon Client Library (new)\n  ↓ RPC with cwd field\nbeadsd Daemon\n  ↓ tree-walking per request\nCorrect .beads/*.db\n```\n\n## Components\n\n### 1. Extend Daemon RPC Protocol\n**Files:** `internal/daemon/protocol.go`, daemon handlers\n\n- Add `Cwd string` field to all request types (CreateIssueRequest, UpdateIssueRequest, etc.)\n- Daemon does tree-walking to find `.beads/*.db` based on cwd\n- Each operation gets its own context (stateless per request)\n\n### 2. Create Daemon Client Library\n**New file:** `integrations/beads-mcp/src/beads_mcp/bd_daemon_client.py`\n\n- Python client for daemon RPC protocol\n- Methods matching current BdClient interface\n- Adds `cwd` parameter to all requests\n- Handles connection management, retries\n- Falls back to CLI if daemon unavailable\n\n### 3. Update MCP Server\n**File:** `integrations/beads-mcp/src/beads_mcp/server.py`\n\n- Store workspace_root from `set_context` \n- Use daemon client by default, fall back to CLI client\n- Pass workspace_root as cwd to all operations\n- Handle daemon not running gracefully\n\n### 4. Update bd_client.py\n**File:** `integrations/beads-mcp/src/beads_mcp/bd_client.py`\n\n- Make it an abstract interface/base class\n- Concrete implementations: BdCliClient, BdDaemonClient\n- Factory function to create appropriate client\n\n## Benefits\n\n- ✅ True multi-repo support (each request has context)\n- ✅ Better performance (no process spawning)\n- ✅ Concurrent access already solved (daemon exists)\n- ✅ Stateless per request (no env var persistence issues)\n- ✅ Falls back to CLI when daemon not running\n\n## Implementation Steps\n\n1. **Extend RPC protocol** (Go)\n   - Add Cwd field to request structs\n   - Update daemon handlers to use cwd for tree-walking\n   \n2. **Create daemon client** (Python)\n   - Implement RPC protocol in Python\n   - Match BdClient interface\n   \n3. **Refactor MCP server**\n   - Abstract BdClient\n   - Use daemon client when available\n   \n4. **Test with multiple repos**\n   - Concurrent operations\n   - Context switching\n   - Daemon restart handling\n\n## Related Issues\n\n- bd-105: Root cause investigation (this is PATH 1.5 solution)\n- bd-114: Multi-server confusion (will be resolved)\n- bd-97, bd-98, bd-99, bd-100: Daemon implementation (foundation)","acceptance_criteria":"- MCP server can use daemon RPC instead of CLI\n- Each operation includes cwd context\n- Daemon routes to correct database per request\n- Works with multiple repos simultaneously\n- Falls back to CLI gracefully if daemon unavailable\n- All existing MCP tests pass\n- New multi-repo integration tests pass","notes":"## Progress: Session 2 (2025-10-17 continued)\n\n### Completed\n1. ✅ Updated MCP server to use daemon client\n   - Modified `tools.py` to use `create_bd_client()` factory\n   - Passes `BEADS_WORKING_DIR` from environment\n   - Uses daemon by default, falls back to CLI\n2. ✅ Added `BEADS_USE_DAEMON` environment variable\n   - Default: `1` (enabled)\n   - Set to `0` to force CLI mode\n3. ✅ Created multi-repo integration test (`test_multi_repo.py`)\n   - Tests concurrent operations across two repos\n   - Verifies proper database routing based on cwd\n   - Validates issue prefix isolation (r1- vs r2-)\n   - All tests pass! ✅\n4. ✅ Updated MCP README with daemon usage docs\n   - Added BEADS_USE_DAEMON to environment variables\n   - Added multi-repo test documentation\n\n### Test Results\n```\n=== All Tests Passed! ===\nSummary:\n  ✅ Per-request context routing works\n  ✅ Multiple repos are properly isolated\n  ✅ Concurrent operations succeed\n  ✅ Daemon handles rapid context switching\n```\n\n### Files Modified/Added (Session 2)\n- `integrations/beads-mcp/src/beads_mcp/tools.py` - uses daemon client ✅\n- `integrations/beads-mcp/test_multi_repo.py` - NEW integration test ✅\n- `integrations/beads-mcp/README.md` - daemon documentation ✅\n\n### Architecture Validated\n\n```\nAI Client (Claude/Amp)\n  ↓\nMCP Server (workspace_root from set_context)\n  ↓ create_bd_client(prefer_daemon=True, workspace_root)\nDaemon Client Library\n  ↓ RPC with cwd field\nbeadsd Daemon\n  ↓ per-request tree-walking\nCorrect .beads/*.db\n```\n\n### Ready to Close\nAll acceptance criteria met:\n- ✅ MCP server can use daemon RPC instead of CLI\n- ✅ Each operation includes cwd context\n- ✅ Daemon routes to correct database per request\n- ✅ Works with multiple repos simultaneously\n- ✅ Falls back to CLI gracefully if daemon unavailable\n- ✅ All existing MCP tests pass\n- ✅ New multi-repo integration tests pass","status":"closed","priority":1,"issue_type":"feature","created_at":"2025-10-17T16:20:00.775954-07:00","updated_at":"2025-10-17T16:37:34.504057-07:00","closed_at":"2025-10-17T16:37:34.504057-07:00"}
 {"id":"bd-116","title":"Issue in repo2","description":"This should go to repo2 database","status":"open","priority":1,"issue_type":"task","created_at":"2025-10-17T16:34:10.054592-07:00","updated_at":"2025-10-17T16:34:10.054592-07:00"}
 {"id":"bd-117","title":"Issue in repo1","description":"This should go to repo1 database","status":"open","priority":1,"issue_type":"task","created_at":"2025-10-17T16:34:10.054141-07:00","updated_at":"2025-10-17T16:34:10.054141-07:00"}